On September 29, 2017, Reading Health System (Reading) announced the completion of its acquisition of five regional Community Health Systems, Inc. (CHS) hospitals ? Brandywine, Jennersville, Pottstown, Phoenixville, and Chestnut Hill. Independence had provider agreements with this group of CHS hospitals in our five-county service area, as well as the entities listed below.

We provided the new parent company, Reading, with a fair and reasonable proposal to assume these provider agreements based on careful consideration of various factors. Unfortunately, on Friday, September 29, Reading informed Independence they did not accept the proposal. Therefore, effective October 1, 2017, the five hospitals now owned by former Reading/now Tower Health are no longer in the Independence network.

The following are the impacted CHS entities:

• Brandywine Hospital
• Chestnut Hill Hospital
• Jennersville Regional Hospital
• Phoenixville Hospital
• Pottstown Memorial Medical Center
• Surgery Center of the Main Line
• Surgery Center at Limerick
• Blue Bell Surgery Center
• Pottstown Medical Transport
• Pottstown Clinic Company
• Phoenixville Clinic Company
• Coatesville Clinic Company
• Chestnut Hill Clinic Company
• West Grove Clinic Company
• Schuylkill Internal Medicine Associates
• West Grove Family Practice
• Jennersville Family Medicine
• Coatesville Cardiology Clinic
• Phoenixville Orthopedic Specialists
• Coventry Clinic Company
• Village Medical Center Associates

While we are disappointed with this outcome, our biggest concern right now is addressing the immediate needs of our members and network physicians. In addition to launching a comprehensive outreach to members, we will also be sending further information directly to (former CHS non-employed) network physicians who are directly impacted by this change in ownership.

We are committed to providing coverage for our members at in-network levels at the five (former CHS) hospitals, entities and physicians they employ, during at least the next 30 days. As always, emergency services at any hospital are covered under all plans. If members have questions regarding continuity of care, they should contact Customer Service at the number below.

Our customer service team is ready to work with members to help them get the care they need, when they need it, and with as little disruption as possible. We encourage our members with questions to call 1-888-580-9500 or visit www.ibx.com/membersfirst.